I was “told” that the difference between humanity and Pinocchio is
that when we tell a lie, our noses don’t grow. We grow older. This
includes lies that we tell to ourselves. Sometimes we are controlled
with strings (i.e. contracts), other times we give in to temptation. To
become “real”, we need to be true to ourselves and others.

I’ve always wondered why Pinocchio would want to give up his
puppet-form to become human. It seemed to me he had far more benefits as
an autonomous wooden puppet, since he never grew old, and would never
die. He seemed to have far more freedom than humans typically /
currently enjoy.

Something else I understood is that this is-and always has been- a
story. In storytelling, the storyteller creates characters to illustrate
a larger concept / truth / idea, but the “basic” story is fabricated.
This is alluded to in the Wingmakers material as well. It is “just a
story”, used to illustrate a broader concept.